In a profitable company, the gross profit margin will always be _________ the profit margin.
A) higher than
B) lower than
C) equal to
D) The gross profit margin and the profit margin can never be the same.

Question

Quizplus · Accepted Answer

The gross profit margin only accounts for the cost of goods sold, whereas the profit margin also includes other expenses, making the gross profit margin typically higher.

In a Profitable Company, the Gross Profit Margin Will Always